BILL ANALYSIS Ó
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Fran Pavley, Chair
2015 - 2016 Regular
Bill No: AB 1205 Hearing Date: July 14,
2015
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|Author: |Gomez | | |
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|Version: |May 5, 2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Katharine Moore |
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Subject: The California River Revitalization and Greenway
Development Act of 2015.
BACKGROUND AND EXISTING LAW
California has over 46,000 miles of perennial (year round)
streams located throughout the state. River parkways, including
those in urban areas, are some of the most sensitive and
ecologically important conservation areas in the state. They
may provide crucial riparian habitat for multiple species -
including endangered and threatened species - and also provide
important open space for communities. Many communities,
particularly urban communities, are "park poor." These
communities have insufficient open space areas nearby and lack
ready access to public recreational opportunities afforded by
proximity to trails, parks and open space.
Existing law authorizes the Department of Water Resources to
establish a program of flood damage reduction and urban creek
restoration known as the Urban Streams Restoration Program
(Water Code §7048). Since 1985, the program has provided more
than 270 grants ranging from $1,000 to $1 million to communities
throughout California for projects ranging from bank
stabilization to the occasional acquisition of strategic
floodplain properties or easements. The last funding cycle for
the program was in 2014, where over $8 million was awarded to 13
project proposals.
Existing law establishes the California River Parkways Program
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(Public Resources Code (PRC) §§5750 et seq.) under the
administration of the Secretary of the Natural Resources Agency
(agency). It requires the agency to provide grants for river
parkway projects that acquire land for river parkways or for the
restoration, protection, and development of river parkways. The
agency is currently soliciting for a one-time funding round of
approximately $7.6 million for the acquisition, restoration,
protection and development of river parkways. The funds for
this cycle are the last of the Proposition 84 funding for the
program. Eligible entities include public agencies and
non-profits.
Additionally, the agency administers other grant programs,
including the Urban Greening for Sustainable Communities (on
behalf of the Strategic Growth Council) and the Environmental
Enhancement and Mitigation Program that river restoration and
related projects may be eligible for and have received funding
from.
Further, various state bond acts and legislative appropriations
have repeatedly provided moneys, through a variety of programs
and mechanisms, for river and stream restoration. State-level
organizations providing grants for these purposes include the
Department of Fish and Wildlife; the Wildlife Conservation
Board; various Conservancies, including the State Coastal
Conservancy, the San Joaquin River Conservancy, the Santa Monica
Mountains Conservancy, the Strategic Growth Council, and
CalFIRE, among others.
Most recently, in November 2014, voters approved the Water
Quality, Supply, and Infrastructure Improvement Act of 2014
(Proposition1). Proposition 1 authorizes $7.545 billion in
general obligation bonds to fund ecosystem and watershed
protection and restoration, water supply infrastructure
projects, including surface and groundwater storage, and
drinking water protection. More specifically, $1.495 billion is
designated for competitive grants for multibenefit ecosystem and
watershed restoration projects.
Pursuant to the California Global Warming Solutions Act (AB 32),
existing law requires the Air Resources Board (ARB) to adopt a
statewide greenhouse gas (GHG) emissions limit equivalent to
1990 levels by 2020 and to adopt rules and regulations to
achieve maximum technologically feasible and cost-effective GHG
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emission reductions (Health and Safety Code (HSC) §§38500 et
seq.). As part of the implementation of AB 32 market-based
compliance mechanisms, ARB adopted a cap-and-trade program that
caps the allowable state wide emissions of GHGs and provides for
the auctioning of emissions credits. Auction proceeds are
deposited into the Greenhouse Gas Reduction Fund (GGRF) and
available for appropriation by the Legislature.
Existing law establishes and authorizes expenditures from the
GGRF for investments that reduce GHG emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, sustainable agriculture and other
purposes. Existing law requires the Department of Finance, as
specified, to allocate at least 25% of available moneys in the
GGRF to projects that provide benefits to disadvantaged
communities and at least 10% to projects located within
disadvantaged communities (HSC §39713).
Existing law also prohibits the state from approving allocations
for a measure or program using GGRF monies except after
determining that the use of those moneys furthers the regulatory
purposes of AB 32 (HSC §39712).
The 2014 - 15 Budget Act allocated cap-and trade revenues for
the 2014 -15 fiscal year and established a long-term plan for
the allocation of cap-and-trade revenues beginning in fiscal
year 2015 - 16. The Senate Environmental Quality Committee
analysis of this bill includes a detailed review of the auction
revenue expenditures and requirements. The 2015 -16 budget bill
passed both houses on June 15, 2015, but excluded any
appropriation of cap-and-trade auction revenue.
PROPOSED LAW
This bill would create a grant program called the California
River Revitalization and Greenway Development Act of 2015
(CalRIVER) and require the agency to administer the program.
Specifically this bill would:
1)Declare legislative intent to protect, restore and enhance a
network of river systems and riparian corridors.
2)Require the agency to develop a grant program for eligible
applicants to develop projects that assist with implementing
AB 32 and to prioritize funding projects that provide the
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greatest level of the following cobenefits:
a) Recreational access, as specified, especially in urban
corridors and under-parked communities.
b) Transportation mobility, especially pedestrian, bicycle,
and public transit.
c) Economic viability by promoting appropriate development,
as specified.
d) Development of visitor-serving and interpretative
facilities
e) Access and development of pocket parks, community
gardens, demonstration gardens and other urban greening.
f) Species protections and the protection of habitat
strongholds, including improved wildlife corridors.
g) Improved resiliency to climate change impacts.
h) Improved water supply and quality.
i) Job training and workforce development, as specified.
j) Improved stormwater retention.
aa) Improvements along impaired water bodies.
3)Requires projects receiving grants to be consistent with AB
32, the California Water Action Plan, the Safeguarding
California Plan and SB 535 (de León, c. 830, Statutes of
2012).
4)Requires the agency to prioritize awarding grants to projects
that are consistent with a parkway, greenway or urban greening
plan, leverage Proposition 1 funds, and provide recreational
access to a major metropolitan area of the state.
5)Creates the CalRIVER fund, as specified, to receive bond
proceeds and special funds, including, but not limited to,
auction revenues from the GGRF.
6)Makes various supporting legislative findings, as specified.
ARGUMENTS IN SUPPORT
According to the author, "Given the vast potential for using our
river systems to reduce and sequester greenhouse gas emissions,
and no existing integrated, statewide grant program to deliver
these benefits, this bill would establish CalRIVER."
"The program would be especially useful in incentivizing
projects that integrate stormwater, natural resource
improvements, as well as reduction in vehicle miles traveled.
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Without CalRIVER, the state would continue to miss the
opportunities to harness the climate values of our riparian
corridors for greenhouse gas reductions, as well as the many
other cobenefits associated with these projects."
ARGUMENTS IN OPPOSITION
According to the California Taxpayers Association, "AB 1205
would make cap-and-trade funds available for use by the Natural
Resources Agency in administrating the CalRIVER Fund to provide
funding for park and recreational programs, and water supply and
water quality programs. CalTax is opposed to the bill because it
distorts the nature of a regulatory fee. [?] Pending litigation
will determine if the auction component of the cap-and-trade
program constitutes an illegal tax. By directing funds beyond
the clear regulatory purposes, AB 1205 opens up the
cap-and-trade program to litigation risk."
COMMENTS
CalRIVER is a targeted program. The legislative intent section
of this bill makes clear that the intent of the CalRIVER program
is GHG emissions reduction and carbon sequestration while at the
same time achieving the multiple cobenefits possible through
river restoration and related projects, as specified. This
focus becomes slightly muddled later in the bill. Discussions
with the author's office indicate that the bill's intent is to
provide additional resources, but not replace, existing programs
established for river restoration and related projects. The
committee may wish to amend the bill to clarify this point.
[Amendment 1]
Implementation of the program . The statutory language for many
grant programs includes specific direction to the grantor to
develop the program. The committee may wish to provide specific
direction to the agency secretary to do so. [Amendment 2]
Litigation over auction revenue. In 2012, the California
Chamber of Commerce filed a lawsuit against ARB claiming that
cap-and-trade auction revenues constitute an illegal tax. The
Superior Court ruling in late 2013 found that the auction is
more akin to a regulatory fee than a tax. An appeal of that
decision is pending. However, the committee may wish to require
additional language to more explicitly tie the CalRIVER program
into the statutory and regulatory framework developed to ensure
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that GGRF moneys further the regulatory purposes of AB 32
[Amendment 3]
Technical and clarifying changes . The committee may wish to
make a series of minor technical and clarifying changes to the
bill to help ensure the bill's intent is realized. [Amendment 4]
Late "support if amended" letter . A late letter signed by
several community-based organizations expressed qualified
support for AB 1205, and requested several amendments. The
letter expresses concerns about CalRIVER supplanting existing
river and stream restoration programs, such as the Urban Streams
Restoration Program, and requests the provision of base funding
for existing river/stream programs, the removal of any
prioritization for urban areas, assurance that all river grant
programs have tools to meet auction revenue requirements, and
the establishment of a program or process to help communities
engage in the "often confusing state funding processes."
As noted above, CalRIVER is a targeted program, and would be one
of many state programs that provide funding for river and stream
restoration. While many river and stream restoration efforts
may have climate value, it is not clear that all efforts will be
able to qualify for auction revenues. There is therefore
benefit in having multiple programs established for river and
stream restoration with funding, subject to Legislative
appropriation, from a variety of sources. Further, many
existing grant programs provide workshops and assistance to
those seeking funding without a specific statutory requirement.
Rivers with plans. According to the author's office, rivers
throughout the state are in the process of or have completed
restoration plans that could meet that priority criterium
established in this bill. These include the San Joaquin, Eel,
American, San Diego and Los Angeles Rivers. These plans contain
rural reaches. There have also been considerable efforts
undertaken in recent years to revitalize the Los Angeles River.
Both the County (1996) and the City (2007) of Los Angeles have
released revitalization plans, and the US Army Corps of
Engineers recently approved the most extensive restoration
alternative for its Ecosystem Restoration Feasibility Study for
the Los Angeles River. Currently, the LA River's "Greenway
2020" plan calls for public/private efforts to achieve a
continuous 51 mile greenway along the Los Angeles River by 2020
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to facilitate non-vehicular modes of transportation and
recreational access, among other goals. There have also been
several pocket parks added along the Los Angeles River in recent
years.
Double-referral
This bill was heard earlier in the Senate Environmental Quality
Committee. Elements of the bill under that Committee's
jurisdiction are provided here for context and completeness.
Recent related bills
AB 1251 (Gomez, 2015). This bill would establish the Greenway
Development and Sustainment Act which, among other things,
provides for greenway easements. (before the Senate
Appropriations Committee)
AB 530 (Rendon, 2015). This bill would establish the Lower Los
Angeles River Working Group to develop a revitalization plan for
the Lower Los Angeles River. (before the Senate Natural
Resources and Water Committee)
AB 735 (Gomez, 2013). This bill would have established the
Greenway Initiative to promote the establishment of greenways
along rivers statewide (held in the Assembly Appropriations
Committee)
AB 1922 (Gomez, 2014). This bill is an earlier version of AB
1251 (Gomez, 2015) (held in the Senate Appropriations Committee)
SUGGESTED AMENDMENTS
AMENDMENT 1
On page 4, lines 9 & 10, delete "river parkway and urban
creek programs and"
AMENDMENT 2
On page 4, insert after line 11:
"5849. The secretary shall develop regulations, criteria,
or procedural guidelines for the implementation of this
chapter."
AMENDMENT 3
Delete page 2 lines 32 -33 and page 3 line 1-3 and replace
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with:
"to riparian corridors that furthers the regulatory
purposes of the California Global Warming Solutions Act of
2006 (Division 25.5 (commencing with Section 38500) of the
Health and Safety Code) and meets the requirements of the
Greenhouse Gas Reduction and Communities Revitalization Act
(commencing with Section 39710) of the Health and Safety
Code).
(b) In order to eligible for funding under the program, a
project shall demonstrate that it will achieve a reduction
in emissions of greenhouse gases. In selecting projects for
funding, the Natural Resources Agency, in consultation with
the California Air Resources Board, shall consider the
extent to which a project reduces emissions of greenhouse
gases.
(c) In evaluating grant applications for funding, the
Natural Resources Agency shall, in addition to prioritizing
projects pursuant to subdivision (b), consider the extent
to which projects provide the greatest level of the"
AMENDMENT 4
On page 2, line 28, delete "and improve," delete line 29
and replace with:
"increase active transportation, such as biking and walking
and improve non-motorized mobility in the surrounding
communities and decrease vehicle miles traveled."
On page 3, line 5, add "to" between "access" and "and"
On page 3, line 5, delete "interactions," and replace with
"interaction with a river or riparian corridor,"
On page 3, line 7, insert "Improved" before
"transportation"
On page 3, line 9 insert "of the surrounding community"
after "viability"
On page 3, delete line 18 and replace with:
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"(8) Improved water supply, flood protection and water
quality, including the water quality of impaired water
bodies through river restoration."
On page 3, delete line 22.
On page 3, line 23, replace "(b)" with "(d)" and insert
"also" after "shall"
On page 3, delete lines 25 - 27, inclusive.
On page 3, delete line 31.
On page 3, between lines 31 and 32 insert:
"(e) projects receiving funding pursuant to this chapter
for flood protection shall be consistent, as applicable,
with Chapter 4 (commencing with section 8400) of Part 2 of
Division 5, Part 6 (commencing with section 9600) of
Division 5, and Part 9 (commencing with Section 12980) of
Part 6 of Division 6, of the Water Code."
On page 3, line 32, replace "(c)" with "(f)."
On page 4, delete lines 1 - 2, inclusive, and replace with:
"(3) Provide recreational access and opportunities to major
metropolitan areas of the state, including those that are
relatively underserved by parks."
SUPPORT
Audubon California
California League of Conservation Voters
California Trout
Los Angeles County Board of Supervisors
Los Angeles River Revitalization Corporation
Sierra Club California
OPPOSITION
California Taxpayers Association
-- END --
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